How Employee Value Proposition Differs from Employee Experience

In many companies, people often use the terms employee value proposition (EVP) and employee experience (EX) interchangeably. Some people believe that EVP is for employer branding and EX is for employee engagement. It is important to understand what each term means and how they differ from each other.

What is employee value proposition?

There are several definitions but put simply, EVP is the value that a company proposes to its employees. This value proposition includes both tangible benefits and abstract feelings that an employer presents to their employees. In short, EVP always answers the question “Why should I work for your company?”. A meaningful EVP should be a description and ambition rolled into one.

For instance if your company indicates that they are “family friendly”, you must create an environment where employees feel comfortable as parents, there are opportunities for employees to spend time with their families. The environment and activities must suggest this and it must be evident.

An EVP is highly valued by employees and serves as a distinguishing factor, setting the company apart from its competitors. EVP is also a tool for acquiring and reinforcing employee commitment.

Elements of a good EVP

A holistic EVP must have the following attributes:

•   Economic attributes (salary, rewards)
•   Functional attributes (details of work, training, and career path)
•   Psychological attributes (culture, teamwork, and interpersonal relations)
•   Organizational attributes (company history, reputation, and market leadership)

Why is an EVP important?

Employees want to work in an organization that is clear about its values. A good EVP can strengthen the commitment an employee feels towards the organization and increase the belongingness that they feel. An employee feels pride when they work for a company that is a market leader. The relationship between an employee and the company that they work for is symbiotic. When an employer fulfils an employee’s values and expectations, the employees respond with good commitment towards the organization. They feel connected and fit in with the organization, understand the goals, have role clarity, and therefore contribute to the organizational purpose. A good EVP and the ability of an organization to keep up its promises increases the loyalty among employees. Conversely, failure to keep up promises and an EVP that is not differentiated can impact employee behaviour and their tenure of stay in the organization. A good EVP can even motivate an employee to go beyond the call of duty and put in discretionary effort to contribute to the organization and positive outcomes. A good EVP also acts as a magnet, giving top talent a compelling reason to join the organization. Existing talent also finds that a good EVP unleashes their potential. All this helps business outcomes to be met.

Employee experience

Employee experience (EX) is the sum total of the interactions and experience of an employee’s work life. All touchpoints of an employee life-cycle and work interactions can impact EX. It is one thing to have a strong EVP but the employee experience must reflect that. So while the EVP is the idea, the EX is the product.

The EX can be defined by the interaction between the employee and the organization transcending the human interactions, physical space, digital and organizational work environment. The bottom line is that EX is a result of what employees experience while working in an organization.

Different parts of work environment affect the EX differently. Every employee is a human and therefore the values, wellbeing, and purpose, form the human environment of EX. The organizational environment is all about the experience of an employee like learning, rewards, and internal communication. The physical environment relates to building, facilities, and equipment that an office has. The digital environment relates to the software and hardware that you use at work.

Unlike an EVP, the EX cannot be put into words. It is what employees experience and is therefore different for different people. Employee experience is influenced by meaningful work, an empowering culture, enabling technologies, flexible HR practices and policies, and an inclusive leadership.

Importance of Employee Experience

For every business to be successful, they must focus on employee experience. EX directly impacts employee retention and turnover. A business is more just than the physical space, the products or service that it offers. People are at the heart of every business. When people are cared for, the returns are stupendous. Effective EX creates more engaged employees who are more productive. This in turn impacts the business results and outcomes.

When an employee feels heard and valued, they experience a high employee experience. A good EX helps attract top talent and also help in retaining good performers. A strong work culture that supports, empowers and celebrates employees creates a positive EX. When employees feel a sense of belongingness with their teams and the organization, they perform better.

Poor EX can lead to a toxic work culture. Employees can be stressed if technology does not work or the workplace does not support creativity. They feel burnt out and unhappy. Conversely, a positive EX can improve employee morale leaving employees feeling engaged, refreshed, and valued.

Connection between EVP and EX

Every organization must have a fine balancing act between EVP and EX. If you have a very promising EVP but the EX is bad, people will leave. If your EX is great but you have a weak EVP, you will not be able to attract talent. An EVP can be used as a blueprint for your EX.  The EVP will inform employees about the various touchpoints within the organization and helps you build the communication for your EX.

Summary

An EVP gives talent a compelling reason to join the organization, unleashes talent of employees and aligns everyone’s expectations towards business outcomes. A positive EX can enhance the stickiness with employees and drive business results. AN EVP is a promise that the organization makes to the employees and the EX is what the employees experience while working there.